Compute the sales price and sales volume variance, Cost Accounting

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Compute the sales price and sales volume variance

Response to the following problem:

Wiz Electronics sells computers. During May 2009, it sold 500 computers at a $1,000 average price each. The May 2009 fixed budget included sales of 550 computers at an average price of $950 each.

(1) Compute the sales price variance and the sales volume variance for May 2009.

(2) Interpret the findings.

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Cost Accounting: Compute the sales price and sales volume variance

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Cost Accounting: Compute the sales price and sales volume variance

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